When the corporation issuing the bonds has the right to redeem the bonds prior to the maturity, the bonds are
A) convertible bonds
B) unsecured bonds
C) debenture bonds
D) callable bonds

Question

Quizplus · Accepted Answer

Callable bonds give the corporation the right to redeem the bonds prior to the maturity. Convertible bonds can be converted into common stock, unsecured bonds are not backed by any collateral, and debenture bonds are unsecured bonds backed only by the issuer's creditworthiness.

When the Corporation Issuing the Bonds Has the Right to Redeem